Dealing with No Credit Situations

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site.
Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site.
Compensation from our advertising partners impacts how and where their products appear on our site,
including, for example, the order in which they may appear within review lists.
Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Dealing with No Credit Situations

Posted: May 18, 2010

You have always been able to deal with your expenses with no need for loans and have never used a credit card. You're thinking of buying a home but you do not have any money on hand for doing it. That's when people decide to go in for a loan for dealing with the mortgage on their home. When approaching a bank, having no previous credit history, they will not be very happy to extend credit to you. no credit history could be as good as bad credit history among lenders. However it is still possible to obtain a loan or mortgage by having some documents ready and if you meet certain criteria.
When looking for a loan it is important to know beforehand what are the interest rates and also if there is any collateral required. If you are offering your car or some other property like your office as collateral, you will need to be sure you can pay whatever is due within the set time so as to not be a defaulter. You may end up losing the mortgage and your collateral. You also need to be sure that the APR provided on the loan is affordable and does not result in huge accumulated interests that you find difficult to deal with.
Even though you have no bad credit history, it can be quite frustrating when lenders turn you down on account of not having any credit scores for reference. You could go about it, by starting a checking account with the same bank which gives them a fair idea of your financial status and how much you can afford in terms of monthly payments. Your account history thus can validate you and offer you a good chance to obtain a loan in good standing.
You may also be required to reassure them on your employment and stability in a job. Seeing your employment history will let them know that you can hold down a good steady job over long periods of time. When you have proven to your creditors that there have been no intermittent periods of unemployment they will be more willing to endorse the loan.
Another way is by having them see your previous transactions. Being married also increases your standing with banks as you could have a joint loan taken and the earning power as well as the ability to pay back the borrowed money increases.
Another way to validate your credit worthiness with banks is through estimation of your property or belongings. If you own a good piece of property in a good neighbourhood or prime real estate then that can also be a boost in seeking credit. Your business records can also be shown to prove to them that you have steady income with no arrears. Ownership of affluent articles or collectibles can also be used.
With the right documents and planning, even people with no credit history can be eligible for obtaining sanctions on loans.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Related Research:

Days are getting longer, snow is melting and you already feel the lightest breath of warm breeze on your face - spring is here. Summer holidays are looming, and so is Easter with its shopping. You can lift in spirits and let CreditLand ...Continue reading

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ...Continue reading

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ...Continue reading

The Credit-Land.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers.
Credit-Land.com does not offer any warranties and is not a direct service.
There are no guarantees for approval or offers when applying for a credit card.
Please refer to the application if you would like more information on each credit card.
When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website.
All logos on the Credit-Land.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer.
Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.
Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser.
Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser.
It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site.
Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site.
Compensation from our advertising partners impacts how and where their products appear on our site,
including, for example, the order in which they may appear within review lists.
Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Please note that Credit-Land.com has financial relationships with some of the merchants mentioned here.
Credit-Land.com may be compensated if consumers choose to utilize the links located throught the content on this site and generate sales for the said merchant.